EFFECT OF STRATEGIC MANAGEMENT PRACTICES ON FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN KITUI COUNTY

Abstract

Strategic management practices provide small firms with new tools for survival, growth and maintaining a sustainable competitive advantage. The general objective of this study was to examine an evaluation of strategic management practices on financial management performances of small and medium enterprises in Kitui County. The study concluded that the staffs were served with courtesy and professionalism. They also said that Positive   customer   experience   impacts   positively   on performance of our firm because it results in repeat business. Others were delays and cancellations of orders do result to customer, ambience contributed to positive customer experience and complaints were opportunities that enabled the firm to improve on the services to customers. Operational risks can be mitigated using e-payment systems, shows that on the mitigation of misappropriation of funds, reduce on errors in calculating change from transactions, misappropriation or fraudulent financial reporting. They should look on the lack of transparency in transactions. On how to mitigate on single person dependency the study found that they should not fail to develop and retain high quality staff. They should also check on the loss of corporate expertise to competitors. Further they should ensure that there is no lack of employee succession plans. Further there should be no loss of expertise due to ageing workforce and failure to attract high caliber staff. The study concluded that customer focus account for financial performance of the SMEs in Kitui County. The general form of the equation to predict financial performance of SMEs in Kitui County holding the independent variable constant, financial performance of the SMEs in was predicted whereas customer focus improved financial performance of the SMEs. 

Keywords: Strategic, Performance, Enterprises